Consequences of brexit: Ergosanté expands production capacity

Major event of 2016, the United Kingdom voted 52% to leave the European Union. The decision has since shaken up the political and economic life of the country and the continent. The deadline, initially set for March 29, 2019 at midnight, was postponed to April 12, then to October 31. It finally took place on January 31, 2020 at midnight (Brussels time). The United Kingdom has thus become a third country of the EU. A transition period now runs until December 31.

Uncertainty, the worst of all evils

On January 22, 2019, Britain’s Dyson announced the move of its head office to Singapore. At the beginning of February 2019, it was Nissan which announced to give up producing one of its models, the X-Trail, in the United Kingdom. The Japanese manufacturer has also decided to close its largest European plant, located in Sunderland in the north-east of England. Nissan’s withdrawal is symptomatic. For the president of Nissan Europe, Gianluca de Ficchy: “We took this decision for economic reasons”. “The lingering uncertainty around the UK’s future relationship with the EU does not help companies like ours to plan for the future.”

An agreement “in sight”

After several days the two sides got together to discuss again. In any case, this is what Michel Barnier, chief negotiator for the EU, said. On October 21, before the European Parliament, he explained that he was ready to seek “the necessary compromises, on each side”. That an agreement was “at hand”. Proof of openness for the British government. Who therefore agreed to resume discussions the next day. Meanwhile, the clock is ruthlessly ticking. The lack of concrete prospects hangs like a sword of Damocles over many companies. Failure of negotiations between the United Kingdom and the 27 would amplify the devastating effects of the current crisis.

Technological player in the social and solidarity economy

It is in part, for this same reason, that ErgoSanté inaugurated on February 3, 2020 a new warehouse 400 m2 and 6 m high. Created in 2013, the SME decided to fully integrate production at its Anduze site. This technological player in the social and solidarity economy had selected British partners for their know-how and their adaptability. It subcontracts a large part of its production there. And managed to produce custom ergonomic seats under competitive price, time and volume conditions.

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The production capacity of ergonomic seats will rapidly increase from 3,000 to 10,000 units per year. One of Ergosanté’s flagship product lines. Dedicated to health and well-being at work, capacity extension meets several needs. That of supporting the strong growth of the activity (+ 66% of the turnover under the brand 2019 to 7.3 M €). But also the integration strategy, especially in the context of Brexit. Above all, it is part of a plan to preserve product quality and industrial performance.

Ergosanté, an adapted company

The expansion of capacities will also generate the creation of more than 20 jobs. Jobs mainly for workers with disabilities. Ergosanté is an adapted company, which employs at least 80% of disabled employees for its production. For Samuel Corgne, CEO and founder of ErgoSanté “The industrial management set up with our subcontractors to ensure tailor-made production was already complex. With Brexit it becomes unmanageable. The integration of production at the company’s headquarters will allow us to increase our industrial performance. It will also create jobs in the region. And strengthen our adapted business model, by contributing to the employment of people with disabilities. ”